Illinois § 113

§ 113.

Insurable interest of trustee. (a) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the owner if, on the date the policy is issued: (1) the insured is: (A) a settlor or beneficiary of the trust; or (B) an individual in whom a settlor of the trust has, or would have had if living at the time the policy was issued, an insurable interest; and (2) the trustee determines the life insurance proceeds: (A) are for the benefit of one or more trust beneficiaries that have an insurable interest in the life of the insured; or (B) will carry out a purpose of the trust. (b) If a trustee of a trust would have an insurable interest in the life of an individual insured as described in this Section, then the insurable interest includes the joint lives of such an individual and his or her spouse. (c) Nothing in this Section limits or affects any provision of the Viatical Settlements Act of 2009. (Source: P.A. 101-48, eff. 1-1-20.)